ArcelorMittal has announced plans to close the steel shop and billet rolling mill at its Duisburg wire rod facility next year as part of measures to address continuing structural challenges facing the European bars and rods market. The decision follows the steelmaker’s 2024 move to end its iron supply contract with neighbouring thyssenkrupp. ArcelorMittal said continuing the agreement had become economically unviable, while alternative options for supplying iron to the Duisburg steel shop were also found to be commercially unsustainable.
The company said it had explored several alternatives, including changes to the production process, to continue operations at the steel shop. However, none of the options examined provided an economically viable solution. Following the closure, the Duisburg facility will source semifinished steel from other ArcelorMittal production sites and third-party suppliers. ArcelorMittal Gandrange, which currently receives semifinished steel from Duisburg, will also be supplied through other ArcelorMittal facilities and external producers. The company said the move is aimed at supporting the long-term future of its Duisburg operations despite difficult market conditions across the European long-products sector.
“We recognize that this is difficult news for our employees in ArcelorMittal Duisburg,” said Sanjay Samaddar, Chief Executive Officer of ArcelorMittal Europe Long Products. “While the structural challenges facing the bars and rods sector in Europe are significant and widely known, including low capacity utilization, decreasing local demand, restricted export opportunities and high energy costs, the company’s absolute priority is securing the long-term future of ArcelorMittal Duisburg, for our customers, our employees and the wider community,” he added.
European steel producers have been facing continued pressure from weak regional demand, high energy costs, reduced capacity utilisation and limited export opportunities. These challenges have affected the competitiveness of long-products manufacturing and increased the need for companies to review production structures and supply arrangements.
ArcelorMittal said it will begin discussions with employees and their representatives regarding layoff plans later this month. The company did not provide further details on the number of positions expected to be affected. The closure of the steel shop and billet rolling mill will change the production structure at Duisburg, with the site shifting towards the processing of externally supplied semifinished steel. ArcelorMittal said its focus remains on maintaining the long-term viability of the Duisburg operation and continuing to serve customers through its broader European manufacturing network.
